Housing Policies in the Service of Social and Spatial (In)Equality

The publication "Housing Policies in the Service of Social and Spatial (In)Equality" by Iva Marčetić, published by Right to the City in Zagreb, presents a critical examination of housing policies in Croatia. It addresses the intersection of social and spatial inequalities, emphasizing how the evolution of housing policies has shaped current living conditions, particularly for younger generations.

The research highlights the legacy of the Yugoslav housing system, which provided a significant amount of socially-owned housing, accounting for 25% of the housing stock by the end of the 1980s. The transition to a market-oriented system led to drastic privatization and a subsequent decline in public housing availability, reducing state-managed units to approximately 2% today.

Privatization efforts, particularly during the 1990s, have been linked to increased housing debt and affordability issues. The report reveals that many young people, particularly those born in the 1980s and later, face significant barriers to home ownership, with the average age for moving out of parental homes reaching 33. The report discusses how high rates of homeownership often mask underlying overcrowding and social inequality.

The analysis discusses rising housing debt, which grew substantially from 2000 to 2008. The introduction of foreign currency loans, particularly in Swiss francs, has exacerbated the financial burden on households, leading to increased monthly payments for many families. The report reveals that while housing loans increased, affordability declined significantly, with the average inhabitant of Zagreb now spending a higher percentage of their income on housing compared to other European capitals.

The publication critiques the response of housing policies to the financial crisis, which largely focused on subsidizing housing loans rather than investing in public housing. The introduction of the Publicly Subsidized Housing Construction Programme (POS) aimed to address housing shortages but primarily benefited those already in a position to secure loans. The report indicates that only 9,363 apartments were built under the POS programme between 2001 and 2020, suggesting limited impact on overall housing affordability.

Marčetić’s work serves as a crucial resource for understanding the complexities of housing policies in Croatia and their implications for social equity and urban planning. The findings suggest a need for a re-evaluation of housing strategies to address the growing disparities in access to affordable housing, particularly for younger generations.